TaxTMI 
TaxTMI 
2022 (12) TMI 1296
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....he provisions of Section 73(1) of the Finance Act, 1994. 2) I order the recovery of interest from M/s. Uravi T & Wedge Lamps Pvt. Ltd. at the applicable rate of the service tax not paid/short paid under the provisions of Section 75 ibid. 3) I impose a penalty on M/s. Uravi T & Wedge Lamps Pvt. Ltd. of 1,94,437/- (Rupees One lakh ninety four thousand four hundred thirty seven only) under the provisions of Section 78 ibid. 4) I impose a penalty of Rs 10,000/- on M/s. Uravi T & Wedge Lamps Pvt. Ltd. under the provisions of Section 77(1a) ibid for their failure to obtain registration and thus for contravention of Section 69 of the Finance Act 1994 read with Rule 4 of the Service Tax Rules, 1994. 5) I impose a penalty each of Rs 10,000/- on M/s. Uravi T & Wedge Lamps Pvt. Ltd. under the provisions of Section 77(2) ibid for their failure to file ST-3 Returns and to properly quantify the value of the services rendered by them. 6) I order the payment of applicable late fees i.e Rs 20000/ for each return not filed by them for the period half year ending March 2009 to half year ending March 2013 within the period prescribed by law." 2.1 Appella....
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....be imposed on them for failure to file ST-3 returns as provided under Section 70 of the Finance Act, 1994 read with Rule 7C of the Service tax Rules, 1994; (g) Penalty under Section 78 of the Finance Act, 1994 should not be imposed on them for non-payment of Service Tax by suppressing the fact from the department with intent to evade payment of Service Tax." 2.4 The show cause notice was adjudicated as per the impugned order referred in para 1 and appeal filed by the appellant in the matter was dismissed by the Commissioner (Appeals) as per the impugned order. Hence this appeal. 3.1 I have heard Shri Stebin Mathew, Advocate for the appellant and Shri Sunil Kumar Katiyar, Assistant Commissioner, Authorised Representative for the Revenue. 3.2 Arguing for the appellant, learned counsel submits that:- • Government of India came up with VCES scheme in 2013 and they filed a declaration in January 2014 for the period April 2008 to December 2012 under VCES-1 to the concerned authority declaring service tax liability amounting to Rs.1,78,163/-. Their VCES-1 was duly acknowledged and accepted by the department and VCES-2 was issued to them. Thereafter they made....
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....he salient features of this scheme: 1) The declarant had to make a declaration in form VCES-1 to the designated authority on or before 31.12.2013, 2) On receipt of the declaration, the designated authority was to issue acknowledgement in form VCES-2, 3) The declarant had to pay the declared liability by specified periods 4) On fill payment of taxes, the designated authority was to issue acknowledgement of discharge in VCES-3. 5) Certain categories of assessees were deemed to be noneligible for this scheme. 6) The benefits of the scheme were-no interest, no penalty, no future legal proceedings and no prosecution. 7) Period subsequent to 31.12.2012 would not be covered under the scheme Now, in view of the above, the period for which the demand has been raised can be further divided into two periods viz. 1) From Oct 2008 to Dec 2012. This period is covered under the VCES scheme. 2) Jan 2013 to Mar 2013.This period is beyond the VCES scheme. Persons not eligible for the scheme I. Person cannot make declaration of tax dues for which a) SCN (u/s 73 or 73A) b) Orde....
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....ollows: "17. We are an entire agreement with the above observation of the Division Bench extracted above. Once it is shown that an audit has been initiated and it is pending, there is no scope for restricting the sweep of Section 106(2)(b) to an audit in relation to a particular kind of service. If at an audit, the department is able to unearth a service being rendered by the assessee, which has neither been registered nor been assessed to, it is definitely open to the department to require the assessee to pay the service tax and the penalty payable for providing such service. The rigour of such taxing statute cannot be whittled down by the appellant by seeking to invoke so called voluntary compliance that too after the fact that the service has not been registered or has not been taxed was discovered by the department. 18. We therefore concur with the view of the learned Single Judge and we see no merits in this appeal. The appeal is therefore dismissed, confirming the order of the learned Single Judge." 12. It appears that this was done with malafide intention to evade service tax thus they failed to discharge their correct service tax liability under t....
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....ry, investigation or audit is pending as on the 1^st day of March, 2013, then, the designated authority shall, by an order, and for reasons to be recorded in writing, reject such declaration. 107. Procedure for making declaration and payment of tax dues. - (1) Subject to the provisions of this Scheme, a person may make a declaration to the designated authority on or before the 31st day of December, 2013 in such form and in such manner as may be prescribed. (2) The designated authority shall acknowledge the declaration in such form and in such manner as may be prescribed. (3) The declarant shall, on or before the 31st day of December, 2013, pay not less than fifty per cent. of the tax dues so declared under sub-section (1) and submit proof of such payment to the designated authority. (4) The tax dues or part thereof remaining to be paid after the payment made under sub-section (3) shall be paid by the declarant on or before the 30th day of June, 2014 : Provided that where the declarant fails to pay said tax dues or part thereof on or before the said date, he shall pay the same on or before the 31st day of December, 2014 along with interes....
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....made by a declarant under this Scheme was substantially false, he may, for reasons to be recorded in writing, serve notice on the declarant in respect of such declaration requiring him to show cause why he should not pay the tax dues not paid or short-paid. (2) No action shall be taken under sub-section (1) after the expiry of one year from the date of declaration. (3) The show cause notice issued under sub-section (1) shall be deemed to have been issued under section 73, or as the case may be, under section 73A of the Chapter and the provisions of the Chapter shall accordingly apply." 4.4 The scheme has provided itself contents and has been explained by the Board in terms of various circulars issued. Once a declarant files a declaration admitting the tax liability for the period upto December 2012 in Form VCES-1, Revenue has to issue the acknowledgment in VCES-2 or reject the same by issuing a notice to the declarant. If no such rejection is done, the declarant proceeds to make the payment of the declared liability and intimates to the concerned designated authority who issues the final discharge certificate in Form VCES-3. In the present case it is not even t....